Companies planning buybacks in bigger numbers

Companies that have lots of cash but don't want to go on buying sprees are increasingly buying back their own shares this year, often announcing the plans in tandem with dividend increases.

By June 4, 310 companies had said they planned to buy back up to $173.3 billion worth of stock for far in 2010, according to figures compiled by deal-tracking firm Dealogic. By the same date in 2009, 253 companies had planned $20.3 billion in stock buybacks, Dealogic said.

A company may buy back its stock to bolster the price by cutting the supply. The move also can boost earnings per share because analysts profit will be measured against fewer outstanding shares.

The increase in buyback announcements may indicate companies are more willing to spend.